BNK Petroleum Inc. announces new senior credit facility

TSX ticker symbol; BKX

CAMARILLO, CA, Jan. 29, 2013 /CNW/ - BNK Petroleum Inc. (the "Company") (TSX: BKX) is pleased to announce that its indirect wholly owned
subsidiary BNK Petroleum (US) Inc. ("BNK US") has obtained a new
US$76,000,000 credit facility ("new facility") from Morgan Stanley
Capital Group Inc. ("MSCGI"). The initial commitment amount of the new
reserve-based facility is US$61,000,000 with an additional uncommitted
amount of US$15,000,000 available at the discretion of MSCGI. A
portion of the proceeds from the initial advance under the new facility
were used to repay BNK US' existing Senior First Lien Secured Credit
Facility, which had a fully drawn borrowing base of US$32,000,000.

After the repayment of the existing facility, the proceeds from the new
facility are primarily intended to fund drilling of Sycamore/Caney and
Woodford wells in the Tishomingo field. A portion of the proceeds may
also be used for general corporate purposes, including the Company's
European activities. The new facility will bear interest at a per
annum rate equal to the greater of 1% and the then three month LIBOR
plus an applicable margin ranging from 4% to 9% based on the ratio of
outstanding borrowings to present value of proved developed producing
reserves discounted at 9% ("PDP PV9"). The facility provides for
principal amortization beginning July 1, 2013 through the maturity of
the facility in five years. Amortization is determined based on a
formula of PDP PV9 to outstanding debt subject to a minimum monthly
amortization of US$300,000 a month beginning in January 2014.

Commenting on the new facility, Wolf Regener, President and CEO said "We
are pleased to have received this new, larger facility from MSCGI which
will allow the Company to drill additional Sycamore/Caney shale wells
and speed up the pace of development of its Woodford shale assets. The
test results from our Sycamore/Caney exploration wells have been very
encouraging and we hope to be able to continue to improve on flow rates
in future wells and create substantial value from these new intervals".

David Lazarus, Executive Director, Morgan Stanley & Co, stated "We
are delighted to provide BNK with a creative solution to fund the
development of its Oklahoma producing properties. Highlighting Morgan
Stanley Capital Group, Inc.'s extensive experience with innovative
financing, hedging, physical supply and offtake solutions, this
facility provides BNK with the development capital that it needs today,
with the added benefit of automatic interest rate and amortization
reductions as BNK's asset value increases."

Europe

In Germany, the Company has decided to stop its exploration activities
in selected areas and intends to relinquish its five concessions in
Thuringia, Saxony-Anhalt and Lower Saxony. The geological work
conducted over the last few years indicates an increased geological
risk for unconventional oil and gas projects on these concessions.
This decision is the result of an internal ranking of all of the
Company's international projects, which considers the geological risk
and expected resource potential. The Company will concentrate its
unconventional exploration efforts in Germany on its three remaining
concessions in North Rhine Westphalia.

In Spain the Company has submitted five separate Environmental Impact
Assessment ("EIA") documents for its exploration permits on its Sedano
and Urraca concessions. The EIA's are part of the process to obtain
approval to drill exploration wells on these concessions.

In Poland, as was stated in the Company's January 13, 2013 press
release, the Company is still awaiting approval for the re-entry of the
Gapowo B-1 well to drill a horizontal leg.

About BNK Petroleum Inc.

BNK Petroleum Inc. is an international oil and gas exploration and
production company focused on finding and exploiting large,
predominately unconventional oil and gas resource plays. Through
various affiliates and subsidiaries, the Company owns and operates
shale gas properties and concessions in the United States, Poland,
Spain and Germany. Additionally the Company is utilizing its technical
and operational expertise to identify and acquire additional
unconventional projects outside of North America. The Company's shares
are traded on the Toronto Stock Exchange under the stock symbol BKX.

Caution Regarding Forward-Looking Information

Certain statements contained in this news release constitute
"forward-looking information" as such term is used in applicable
Canadian securities laws, including information regarding the Company's
use of proceeds from the new facility and future well development and
approval for the drilling of a horizontal leg in the Gapowo B-1 well.
Forward-looking information is based on plans and estimates of
management and interpretations of exploration information by the
Company's exploration team at the date the information is provided and
is subject to several factors and assumptions of management, including
that the indications of early results are reasonably accurate
predictors of the prospectiveness of the shale intervals, that required
regulatory approvals will be available when required, that expected
production from future wells can be achieved as modeled, declines will
match the modeling, future well production rates will be improved over
existing wells, that rates of return as modeled can be achieved, that
recoveries are consistent with management's expectations, that
additional wells are actually drilled and completed, that no unforeseen
delays, unexpected geological or other effects, equipment failures,
permitting delays or labor or contract disputes are encountered, that
the concession modification approval for the Gapowo B-1 well will be
obtained, that the development plans of the Company and its
co-venturers will not change, that the demand for oil and gas will be
sustained, that the Company will continue to be able to access
sufficient capital through financings, farm-ins or other participation
arrangements to maintain its projects, and that global economic
conditions will not deteriorate in a manner that has an adverse impact
on the Company's business, its ability to advance its business strategy
and the industry as a whole. Forward-looking information is subject to
a variety of risks and uncertainties and other factors that could cause
plans, estimates and actual results to vary materially from those
projected in such forward-looking information. Factors that could
cause the forward-looking information in this news release to change or
to be inaccurate include, but are not limited to, the risk that any of
the assumptions on which such forward looking information is based vary
or prove to be invalid, including that the Company or its subsidiaries
is not able for any reason to obtain and provide the information
necessary to secure required approvals, that unexpected geological
results are encountered in Oklahoma, that completion techniques require
further optimization, that production rates do not match the Company's
assumptions, that very low or no production rates are achieved, that
the Company is unable to access required capital, that occurrences such
as those that are assumed will not occur, do in fact occur, and those
conditions that are assumed will continue or improve, do not continue
or improve, any of which could result in delays, cessation in planned
work or loss of one or more concessions and have an adverse effect on
the Company and its financial condition. These risks as well as the
other risks and uncertainties applicable to exploration activities and
the Company's business as set forth in the Company's management
discussion and analysis and its annual information form both of which
are available for viewing under the Company's profile at www.sedar.com. The Company undertakes no obligation to update these forward-looking
statements, other than as required by applicable law.